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									                                                                                                                                                                                              FEBRUARY 2010
                                                                                                                                                                                      HAPPY VALENTINE’S DAY!

                                                                                                                                        LOOKING OUT FOR BUSINESS
                                                                                                                           410 South Minnesota Street • Carson City, NV 89703-4272
                                                                                                                                                775-882-1700 •

  l   l   l   l   l   l   l   l   l   l   l   l   l   l   l   l   l   l   l   l   l   l    l   l   l   l   l   l   l   l    l   l   l   l   l    l   l   l   l   l     l    l   l    l    l   l    l    l   l    l    l   l       l

                                                                     Counting Nevada...
                                                                  Census and the Two “R’s”
                                                           NEVADA WILL GAIN ANOTHER CONGRESSMAN

                                          “Certainly, last year we did an episode about the census and sampling versus a
                                               direct statistic. You just said the word ‘census’ and people fell asleep.”
                                                                                          Aaron Sorkin, creator/writer of “West Wing” 2001

                                               O MANy, THE cENSUS                              in Nevada counted.                                                congressmen/women.
                                               IS ANOTHER cOSTly                                    In 1990 Nevada’s response                                    Following the completion of the
                                               gOvERNMENT                                      rate was one of the worst in the                                  count, states are notified of their
                                               PROgRAM DESIgNED to                             nation (45th) and cost the state                                  numbers and the Legislature
                                  waste taxpayers’ dollars. But, in fact,                      tens of millions of dollars. By 2000,                             undertakes the two “R’s”.
                                  it’s a major foundation of our system                        state officials were ready with a “be
                                  of government — the chain that                               counted” campaign. Nevada showed                                  ReAPPORTIOnMenT And
                                  links the American people to their                           the biggest improvement in the                                    RedIsTRICTInG
                                  government.                                                  nation and climbed to 19th for its’                                     The U.S. Census Bureau must
                                        So important is the count that                         response rate.                                                    make the official announcement to
                                  must be performed every 10 years                                  On March 15th the census forms                               Nevada by April 1, 2011.
                                  that it’s in Article 1, Section 2 of the                     will be mailed to each household.                                       The figures are sent to the
                                  Constitution of the United States.                           On April 1, the census will issue a                               Legislature, which is responsible for
                                  The 14th Amendment, passed after                             snapshot of the population. And on                                deciding the reapportionment and
                                  the Civil War, clarifies that everyone                       May 1, census workers, carrying little                            redistricting of the Congressional and
                                  must be counted regardless of                                handheld computers, will knock on                                 Legislative seats. Cities and counties
                                  citizenship. Simply put, the count                           doors, to find out why forms were                                 must do their own drawing of the
                                  is used to figure out how many                               not returned, or to clarify answers.                              ward and district lines.
                                  representatives each state receives                               This year’s short form will                                        Nevada’s Legislature has been
                                  in the House of Representatives as                           have 10 questions, most of which                                  preparing for the redistricting process
                                  well as state legislatures. (Without the                     concern race. Unlike previous years,                              since July 2009.
                                  count, some states would be under-                           there will be no long form. That has                                    “We’re following the same
                                  represented in Congress, while others                        been replaced with the American                                   process we have in previous years,”
                                  would be over-represented.) Tax                              Community Survey that is sent out                                 said Lorne Malkiewich, Legislative
                                  dollars are apportioned to the states                        more often than the census.                                       Counsel Bureau Director, “research
                                  based upon the census information.                                As an employer, you can                                      staff is organizing the information
                                  The 2010 census is recognized as one                         encourage your employees to fill                                  for the Interim Committee on
                                  of the most important in history.                            out their forms and return them in a                                                                    Continued on page 2
                                        For Nevada, an accurate count                          timely manner. Initial estimates are
                                  means $917 in federal funding for
                                  each person. Conversely, it’s a loss of
                                                                                               that Nevada’s population likely fell by
                                                                                               about 1 percent between July 2008
                                  the same amount for each person                              and July 2009, the first time since                                   A Fight Fraud Warning for
                                  missed. In the 2009 Legislative                              World War II that Nevada has seen                                     Nevada Businesses .................................. 2
                                  Session, $960,000 was allocated                              such a decrease. Those numbers                                        Nevada State Board of
                                  for a campaign to make Nevadans                              will only be known for certain once                                   Pharmacy Meeting Update .................... 3
                                  aware of the census. In December                             the count takes place. Each person                                    The Irony of Punishment ........................ 4
                                  the Board of Examiners awarded a                             ensures federal funding for schools,                                  Modest Holiday Spending
                                  public relations contract to Weber                           roads and health care.                                                Increase in 2009 ....................................... 5
                                  Shandwick, a New York PR firm,                               Nevada’s growth prior to the 2008                                     Retail Employment in
                                  which will subcontract with Greg                             decrease has all but guaranteed                                       Nevada Has Declined .............................. 5
                                  Ferraro’s company, The Ferraro Group,                        that Nevada will have another                                         Movin’ On Up (Part 3) .............................. 8
                                  in Reno and Las Vegas. The campaign                          representative — giving the state                                     Next Big Shopping Rush ......................... 8
                                  has already begun, with the goal of                          a total of six in the Congressional                                   Security Tips for Retailers .....................11
                                  having every man, woman and child                            Delegation — two senators and four
                Retail Association of Nevada •

Census Continued
Reapportionment.”                           “State law requires the           the South, districts will be larger
     Assemblyman Tick                  Senate to be one-half the size         than they are at present, but we
Segerblom (D-Boulder City)             of the Assembly,” said Michael         need to ensure one-man, one-
chairs the interim committee.          Stewart, research analyst for          vote,” he said.
     “It’s important to me that        the Reapportionment Interim                 Assemblywoman Sheila
we get as much public input as         Committee. “In 2001 there              Leslie (D-Reno) is running for
possible,” explained Segerblom,        was a proposal to expand the           the State Senate this year, and
“we’ll be holding public               Assembly to 46 seats and the           reapportionment is one of her
hearings. Clearly we’re going to       Senate to 23. That didn’t pass, of     concerns. “I want to protect
protect the Democratic seats we        course. Our constitution limits        northern Nevada. I’ll be fighting
presently hold, but I want to be       the size of Legislature to 75          for more seats to ensure proper
as non-partisan as possible.”          (50 in the Assembly, 25 in the         representation,” she said.
     One of the major issues           Senate). Staff’s main function is           One of the problems                 additional salary costs, etc.,”
will be whether the legislature        to provide the committee with          of expanding the size of the             he said.
stays the same size or if it will be   as much information as possible        Legislature is the cost. The 2011              The Interim Committee will
expanded. Presently there are 42       and ensure the rules, regulations      session will be largely occupied         also be responsible for hiring
Assemblymen and 21 Senators.           and laws regarding redistricting       with possible cuts to the                a consultant to help figure the
                                                        are followed.”        budget. Will the state be able to        various maps. The districts must
                                                           Segerblom          afford a larger legislature?             conform to various standards
                                                        said that he               “One of the costs would             established by law and court
                                                        didn’t want to        be office space and space                decisions.
                                                        see Northern          in the Assembly and Senate                     The Legislature is publishing
                                                        Nevada left           Chambers,” said Stewart.                 a newsletter and posting
                                                        without                    “Presently, as I recall,            information on the their Web
                                                        appropriate           the Senate Chamber can                   site. You can access it at:
                                                        representation.       accommodate two more           
                                                        “Clearly the          senators and I believe the               Interim/75th2009/
                                                        growth has            Assembly can handle four                 Committee/Studies/
                                                        largely been in       more. Of course there would be           Redistrict/?ID=57 n

                    A Fight Fraud Warning for
                         Nevada Businesses
        MAll AMERIcAN                  complete the transaction. Once the     fraudulent order and would like to       American Embassy in Singapore at
        E-TAIlERS AND                  transaction/credit card number(s)      verify its legitimacy, please contact    Singapore.Office.Box@mail.doc.
        ExPORTERS REMAIN A             are accepted, the “buyer” requests     Bill Cline at                            gov. They will be happy to assist
        PRIMARy TARgET for credit      immediate air shipment. Not   or               you in verifying the bona fides of
card fraud schemes using Singapore     aware of the fraud that has just       the Commercial Service at the            the transaction. n
as the purported ordering point and    occurred, the merchant complies
shipping destination.                  with the customer’s request of an                     If you think you have been the victim of similar scams
      Detailed information on these    expedited shipment to a legitimate                          regarding other locations, please contact:
fraud schemes can be found at          freight forwarder in Singapore. The                                             Bill Cline           merchant will then receive a charge                           Director, US Commercial Service, Reno
warning_credit_card_fraud.html         back from the credit card company                            Team Leader, Global Environmental Team
      The orders normally range        after the card is reported stolen.                                 US Department of Commerce
from US $5,000 to US $30,000.          By that time the goods have been                              One E. First St., 16th Fl • Reno, NV 89501
The “buyer” places the order           transshipped out of Singapore and              Tel 775.784.5203 • Fax 775.784.5343 •
via telephone or Internet email        are unrecoverable.                                  Follow CS Reno on Twitter
correspondence. The “buyer”                  The FBI is working with the                  Consumer protection information can also be found on the
either splits the total purchase       Singapore Police and other law            Attorney General’s Web site at
price between several cards or         enforcement agencies in the                  the Nevada Fight Fraud Web site at and at the
makes several attempts (using          region to combat this crime. If you                   Federal Trade Commission Web site at
multiple credit card numbers) to       suspect that you are in receipt of a
2   ◆
                                       • Retail Association of Nevada

         Nevada State Board of Pharmacy
                 Meeting Update
                                                                    By Liz MacMenamin

            HE STATE BOARD                investigators to avoid issues that        have helped me with this from the         grants were not forthcoming for the
            OF PHARMAcy MET               came to light in the cases heard          beginning and Leo Bausch, who             PMP program. There was only one
            ON WEDNESDAy,                 in the discipline cases that were         was the board member facilitating         dissenting vote on this regulation.
            DEcEMBER 2ND and              presented at the board meeting.           the interested parties that this                LCB File No. R122-09:
Thursday, December 3rd, 2009, in                The fulfillment regulations         regulation would affect.                  This regulation revises requirements
Reno at the Airport Plaza Hotel.          were heard on Thursday morning                  New regulations that were           for an advanced practitioner of
       The Board listened to discipline   and Medco had sent in proposed            passed at this meeting in the public      nursing to obtain a certificate of
cases on Wednesday morning                changes to the regulation. After an       workshop were:                            registration to dispense certain
and the common themes in both             offline discussion with Medco, it               LCB File No. R123-09:               medications.
that were heard was the issue of          was determined that the changes           This regulation adds buprenorphine
“counseling”. On Thursday a board         they were proposing were not really       to the list of schedule III drugs and     New STATe BOARD OF
member brought up the recurring           needed. We went to the table in           removed it from the schedule V            PhARmACy memBeRS
problem regarding what constitutes        agreement and the board accepted          listing.                                        We have two new board
counseling of a patient. The board        the proposed changes that we had                LCB File No. R120-09:               members on this board, Kirk
made the decision to bring this           introduced. Those changes were to         This regulation made changes              Wentworth and Beth Foster.
subject up at the next board              delete Section 8 (a)(2), and (c). The     to requirements for a physician           Kirk Wentworth is an independent
meeting and staff suggested that          regulation will come back for public      assistant to obtain registration          pharmacist practicing in Carson
they do a “round table” discussion.       hearing as soon as LCB returns the        certificate to prescribe and dispense     City. Beth Foster is a pharmacist
The discussion would include the          regulation with the changes. Board        certain medications.                      practicing at the Veterans’
industry, board members, and the          staff commented that they were                  LCB File No. R119-09:               Administration Hospital. We would
investigators and inspectors. It will     not expecting the changes back in         This regulation increased the fees        like to extend a welcome to these
be determined at that time what           time for the January meeting, so this     for the investigation, registration       new board members and look
actions the Board will take after         will probably not be heard until the      or renewal of registration for a          forward to working with them in
holding this discussion. RAN will be      meeting in March.                         pharmacist and intern pharmacist.         the future.
present at this meeting to represent            We would like to thank              Larry Pinson stated at one point                The next board meeting
our members. We hope that the             everyone that has helped with this        that the board did not really need        will be on January 13 and 14th in
board will come up with some              language. I would especially like to      the increase but would hold these         Las Vegas. n
clarification for the inspectors and      thank the “experts” from Raley’s who      funds in the event that future

                  Nevada Supreme Court Rules:
                     Pharmacies Not Liable
           HE NEvADA                      macy’s customer, if anyone, and not             A year later, Ms. Copening was      Copening’s drug use. In a 13-month
           SUPREME cOURT, IN              for the general public’s protection,”     driving a Dodge Durango when              period, she obtained 4,500
           A 5–2 DEcISION IN              stated the court in the majority          she hit two deliverymen who were          hydrocodone pills at 13 different
           DEcEMBER 2009, ruled           opinion.                                  standing on the shoulder of a             pharmacies. After the task-force
that pharmacies couldn’t be held                The decision upholds a ruling       highway, killing one and severely         records came to light, the mens’
liable when a customer causes a           by District Judge Douglas Herndon         injuring the other. In Ms. Copening’s     lawyers included the pharmacies as
fatal car accident.                       who earlier dismissed the pharma-         car, police found prescription            defendants.
      The case asked whether              cies from a lawsuit filed by the de-      bottles and loose pills. Police reports         But the court pointed out the
drugstores must use information           ceased man’s family. Ruling for the       said she appeared confused, and a         letter did not require the pharma-
available to them to protect the          pharmacies were Justices Hardesty,        blood test detected the painkiller        cies to stop filling valid prescriptions
public from potentially dangerous         Mark Gibbons, Michael Douglas,            hydrocodone. Ms. Copening                 for Copening. Justices said there is
customers.                                Ron Parraguirre and Kris Pickering.       pleaded guilty to two counts of           “no material difference” between
      Justices decided Nevada’s                 The customer, Patricia              reckless driving and served nine          pharmacists who dispense drugs
pharmacy laws “are not intended to        Copening, had purchased nearly            months in jail.                           and bartenders who provide cus-
protect the general public from the       4,500 doses of prescription                     The men’s families sued Ms.         tomers alcohol. Under the state’s
type of injury sustained in this case.”   painkillers in one year, attracting the   Copening and the doctors who              “dram shop” law, bartenders are not
Pharmacies do not have a legal duty       attention of Nevada’s controlled-         wrote her prescriptions. In the           responsible for accidents caused by
to protect people injured by their        substance task force. The state           course of the litigation, they learned    their alcohol-drinking customers.
customers, they stated.                   board sent letters to 14 pharmacies       that the state Prescription Control             The legal action against Ms.
      “The duty (under state law)         in the Las Vegas area in 2003             Substance Abuse Prevention Task           Copening and the doctors has
is to the person for whom the             warning that Ms. Copening could           Force in 2003 had written letters to                          Continued on page 4
prescription was written, the phar-       be abusing drugs.                         pharmacies and doctors concerning
                                                                                                                                                                ◆  3
                  Retail Association of Nevada •

                          The Irony of Punishment
                                              By James Larsen

                 EET FRED. HE’S A         to guide him. Ozgur Gurerk, from           measure each group’s response to         up, i.e. when a supervisor neglects
                 NEW SUPERvISOR,          the Laboratory of Experimental             their incentive system. For groups       to provide the expected reward,
                 AND IT’S HIS FIRST       Economics at the University of Erfurt      whose contribution had fallen            then this absence of reward is
                 DAy ON THE jOB.          in Germany conducted the study.            and whose leaders switched to a          experienced as a punishment.
As he is introduced to his new                   Gurerk set up an elaborate          punishment incentive system, the         Ironically, reward incentive
employees, Fred imagines that each        laboratory experiment using 20             immediate increase amounted              systems are mostly experienced as
one of them is as hard working as         groups with 6 people in each               to 60%, and that surprised even          punishment for proper behavior.
he is. One by one, his people smile       group. He randomly assigned one            Gurerk.                                        Punishment incentive systems,
and tell him they’re glad to have         to be supervisor and gave each                   With the third repetition of the   on-the-other-hand, require much
him. “This will be a snap,” Fred muses    supervisor the freedom to adopt            experiment, five more supervisors        less action from the supervisor.
to himself, and that evening, he          either a reward or a punishment            switched to a punishment system,         He only needs to act when free-
gives his wife a positive report. He’s    incentive system: small additions          but some who had switched to             riding demands it. The rest of the
glad to have such a good staff, and       to or subtractions from their              punishment in the second set             time, when employee conduct is
he tells her that he doesn’t expect       monetary compensation. Next,               switched back to positive. Gurerk        constructive, the supervisor doesn’t
to use punishment in managing this        he turned the groups loose on a            was measuring all the reactions.         need to do any punishing, and that’s
group of people. A month later, he        10-task assignment. Supervisors                  The five groups who found          experienced as a reward. Curiously,
may be singing a different tune. The      used incentives after each task            themselves in a punishment               punishment incentive systems,
honeymoon for new supervisors             to encourage desirable behavior.           incentive system in the final set of     where punishment is rarely used,
ends when they recognize free-            He repeated this experiment two            tasks also responded with a strong       are mostly experienced as reward
riding for the first time.                more times keeping the groups              improvement of their performance.        for proper behavior. The reward is
      Most jobs are organized             together and giving the supervisors        They increased 28%. Those that           merely the lack of punishment.
to allow flexibility. An absence          the opportunity to change the              switched to punishment for the                 Not all of Gurerk’s groups
of one person should not close            incentive system at the beginning          second set and remained negative         developed free-riders. A few
the business merely because the           of each new set of tasks.                  in the third set posted the highest      groups displayed consistently
absent person is the only one who                Just as Fred began positively       performance of all. The poorest          positive performance and good
can carry out an essential task. But      with high hopes for cooperative,           contributions came from groups           cooperation, and they responded
flexibility encourages free-riding,       productive efforts from his                who switched from punishment             well to a reward incentive system.
and often, it’s the supervisor himself    employees, 19 of the 20 supervisors        in the second set to reward in the       So the incentive system a supervisor
who has to step up and carry out          in Gurerk’s experiment also adopted        third. Their performance actually        adopts should respond to the needs
a task that someone else should           positive incentive systems in the          declined.                                of the employee group. Groups
be doing. That’s when punishment          first set of tasks. Near the end of this         In looking over his work,          with free-riders need, want, and
becomes more attractive.                  first set, free-riding appeared, and       Gurerk made some observations            appreciate a punishment incentive
      Punishment takes many               where it was most pronounced,              that are helpful.                        system to correct free-riding.
forms: a scowl, a critical remark,        supervisors switched to punishment               Reward systems reveal a            Groups without free-riders do best
a good chewing out, a written             incentive systems in the second            curious paradox. Supervisors must        with reward. n
warning, a deduction from pay, a          set of tasks and began handing             remember to deliver the rewards,
day off without pay, and ultimately,      out punishments to free-riders. It         and even if they never fail to provide   Reference: Gurerk, Ozgur, Bernd Irlenbusch,
                                                                                                                              and Bettina Rokenbach (2009) Motivating
termination. None of these are nice,      didn’t take long for the free-riders to    proper rewards for productive            Teammates: The Leader’s Choice Between Positive
but eventually, supervisors will          change their ways. For many, it only       behavior, rewards quickly lose           and Negative Incentives. Journal of Economic
use them all. Fred will worry about       took the threat of punishment with         their attractiveness. They become        Psychology, 30(20009), 591-607.
                                                                                                                              C 2010 Management Resources
this and agonize about adding             the new incentive system to correct        expected, and receiving them is
punishment to his management              the free-riding.                           taken for granted. But when an
repertoire, but now, there is research           Gurerk devised a way to             expected reward doesn’t show

Supreme Court Continued
been on hold while the pharmacies         third parties…The pharmacies’ acts         new duty on pharmacies.                  a component that the majority
sought to be dismissed from the           of dispensing prescription drugs                 Justices Michael Cherry and        ignores–notice.”
lawsuits. The district court granted      to Copening did not create a legal         Nancy Saitta dissented from the                This case is part of a broader
the pharmacies’ request, noting           duty,” the court wrote in its majority     majority opinion, saying the phar-       movement to place more responsi-
that the Nevada law creating the          opinion.                                   macies had a duty to review Ms.          bility for patients’ prescription-drug
task force doesn’t specify whether              In a footnote, the court added       Copening’s records and consider          use on pharmacies. Prescription-
any action is required by the             that a regulation amended by the           the task-force letters before filling    tracking systems are operating in 33
pharmacies.                               state pharmacy board in 2006,              her next prescription.                   states, with the goal of identifying
      The families appealed to the        two years after the accident, could              “Generally, the relationship be-   potential addicts and referring them
state Supreme Court, which af-            change the relationship of pharma-         tween a customer and pharmacist          for treatment, or getting law en-
firmed the district court’s ruling. “We   cies to third parties. But the court       does not establish a duty in favor of    forcement involved if necessary. n
conclude that pharmacies do not           declined to decide whether that            third parties,” the dissenting opinion
owe a duty of care to unidentifiable      regulation definitely imposed any          said. “This case, however, includes
4   ◆
                                    • Retail Association of Nevada

               Latest Survey Suggests Modest
              Holiday Spending Increase in 2009
                                                                     Press Release

           HE FINAl NATIONAl            The poll, which specifically asks
           gAllUP POll OF THE           approximately 1,000 adults                        Trend in Christmas Spending Forecast
           HOlIDAy SEASON,              how much they plan to spend
                                                                                     National mean (Spending per Person) 2000 – 2009
           WHIcH WAS conducted          on Christmas gifts during the
December 11–13, revealed that           upcoming holiday shopping
Americans now predict they will         season, is generally conducted
spend $743 on Christmas gifts this      three times in the final quarter
year, up from the $639 reported in      of each year. The results of
December one year ago. The latest       the November poll were less
results are consistent with October     encouraging, with respondents
projections that holiday spending       indicating an expected spend
will be up one to two percent this      of $638, a decline of 14 percent
year compared to last. According        from the previous month.
to Gallup, it estimates the actual           In Nevada, where 1.9 million
percentage change in holiday            residents are over the age of 18,
spending by comparing its final         an average spending tab per
spending forecast for prior years       adult customer of $743 translates
to the actual percentage changes        into $1.4 billion in holiday
that have been calculated by the        spending, up $0.2 billion from
National Retail Federation for those    the $1.2 billion forecast based on
same years.                             November’s poll, and roughly equal     retailers as they enter the last         confidence is moving in the
      In October, a national Gallup     to October’s forecast. Mary Lau,       few days of the holiday shopping         right direction, at least in the
poll revealed that consumers over       President of the Retail Association    season. We are hopeful that this         near-term.” n
the age of 18 expected to spend         of Nevada, noted, “The most recent     last-minute uptick in the spending
$740 per person on gifts this year.     survey is encouraging news for         forecast suggests that consumer

   Retail Employment in Nevada Has Declined
    By 17,900 Positions Since Peaking in 2007
                                                                     Press Release

        INcE PEAKINg IN                 employment occurs during the           latest figures indicate there has        based Applied Analysis noted, “We
        DEcEMBER 2007 AT                holiday shopping season. For this      been a loss of 8,400 retail positions,   are looking for sales growth of 1
        147,400 POSITIONS,              reason, it is worth comparing          or a decline of 6.1 percent year-        to 2 percent during the holiday
        RETAIl jOBS IN NEvADA           October 2009 figures to those          over-year. Since October 2008, job       shopping season as well as more
have declined steadily, totaling only   reported in the same month in          losses in the retail sector have been    seasonal hiring as compared to
129,500 as of October 2009. The         2007, just before the ramp-up to an    approximately proportionate to           late 2008.” Aguero cautioned,
loss of 17,900 positions represents     all-time peak in retail employment     positions lost in the broader state      however, that December 2008’s
a 12.1-percent decline in retail        in the state. Since October 2007,      economy, with a retail position          taxable sales of $3.9 billion were
employment. Over the same time          retail positions have declined by      representing one in every nine           the lowest level reported since
frame, total employment in Nevada       10,600, or 7.6 percent. Over the       jobs lost (10.8 percent). Total          2003, so any improvement will
declined by 5.8 percent, or 74,700      same time frame, total employment      employment in Nevada declined by         be relative. Nevada’s 13.0-percent
positions. Stated otherwise, Nevada     has declined by 5.6 percent, or        6.0 percent over the same period.        unemployment rate is 5.3
retailers account for roughly 11        71,300 positions. Comparing                  Mary Lau, President of the         percentage points higher than it
percent of the state’s employment       October 2007 to the same month         Retail Association of Nevada, said,      was one year ago, meaning there
but nearly 25 percent of its            in 2009, a retail job represents one   “The loss of jobs in the retail sector   are fewer consumers each with
displaced workforce.                    in every seven jobs lost in Nevada,    over the past two years has been         less disposable income generating
      However, it is important          roughly 14.9 percent.                  particularly disheartening. While        the sales that support retail jobs.
to note that retail employment                Comparing October 2009           also impacting the economy as            Respecting these conditions,
tends to be highly seasonal. Peak       to the same month in 2008, the         a whole, declines in consumers’          Aguero noted, “One year ago the
                                                                               discretionary spending have              national and state economies were
   “The loss of jobs in the retail sector over the past two years              disproportionately impacted retail       in a free fall; today there are signs
    has been particularly disheartening. While also impacting                  employees.”                              of life. Consumers with a cautious
  the economy as a whole, declines in consumers’ discretionary                       When asked about the outlook       but improved outlook are slowly
 spending have disproportionately impacted retail employees.”                  for the retail sector, Jeremy Aguero,    creeping out of their shells.” n
             MARY LAU, PRESIDENT, RETAIL ASSOCIATION OF NEVADA                 principal analyst with Las Vegas-
                    Retail Association of Nevada •

                                                       Nevada Notes
    CORPORATe gIvINg: FIve TIPS                    eCONOmIC FOReCAST 2010                             For the most part, most of the            Mirage Retail President Frank Visconti is
       Charity organizations deservedly             Most experts agree that 2010 will           industries in Nevada remain in a dark           confident the retail center will succeed.
get most of the praise for helping             show improvement over 2009. In today’s           tunnel. However, we are beginning to            Luxury sales at other high-end Strip
people. But support behind the scenes          world, improvement is the best we can            see that there is a way out and a light at      properties have declined, according
from local businesses plays a big role in      hope for.                                        the end.                                        to numbers available through publicly
the work foundations are able to do.                                                                               Nevada Business Journal      traded companies.
       Five tips for corporate giving for                      A CheCk On                                                                                                             LVRJ
businesses looking to get involved with                  COnsuMeR sPendInG                                WAllIn And TAxes
community agencies or charities:                      Nineteen percent of Nevada’s                    Kim Wallin is something called the                    gIFT CARD RuLeS
       care for your cause: Find a cause       jobs and one-third of its General Fund           Nevada controller and she would like                   New rules are being proposed for
that you’re passionate about. This will        budget are dependent on retail and               everyone to know that Nevada should             one of the more popular items of the
help you narrow your search from the           its sales tax revenues. So all residents         remain one of only five states without          season — gift cards.
myriad options out there and also make         need a profitable holiday season.                some form of a corporate income tax.                   The new rules are being proposed
it easier for you to be truly involved.        Unfortunately, projections aren’t                      “Corporate income tax is a hidden         by the Federal Reserve Board, which
       Narrow your focus: Given all the        favorable.                                       tax, because if you’re in a business and        was directed to take action under a law
needs in the community, it’s easy to                  “There hasn’t been a point this year      we charge you five percent, you’ll charge       enacted by Congress in May.
spread yourself thin. Start by focusing on     that we’ve shifted above 2008 numbers,”          the customer 10 percent,” Wallin told                  But the new rules would give
one cause and doing the best job you           says Mary Lau, president of the Retail           the Lyon County Commission recently,            consumers at least five years to use the
can with it.                                   Association of Nevada (RAN).                     according to the Reno Gazette-Journal.          gift cards before they expire. They would
       Don’t hesitate to ask: Corporate               In fact, 2008 holiday sales totaled             But while there is scant “empirical       also allow service or “inactivity” fees only
giving is a serious commitment, so             just $3.9 billion, the lowest since              research” showing that corporate                under certain conditions.
don’t be afraid to ask questions before        December 2003. Although the national             income taxes lead to higher prices,                    More than 95 percent of
deciding to support an organization.           Gallup poll conducted in October 2009            economists overwhelmingly agree that            Americans have received or purchased
Questions you can ask include how              found that consumers expect to spend             companies pass gross receipts taxes             gift cards, the Fed said. And that number
financial contributions are distributed,       $740 per person this holiday season —            directly to consumers.                          is unsurprising; gift cards are handy,
how much goes toward overhead                  up 16 percent over last year’s numbers                                               City Life   convenient and practical.
and how much actually stays in the             — Jeremy Aguero says national numbers                                                                   The new rules are not slated to
community.                                     are likely to be elevated compared to                 WITh neW POWeR, COunTy                     take effect until Aug. 22.
       Money isn’t everything: Being           Nevada, where an unemployment rate                         OKS BuSINeSS FINeS                                                             LVBP
involved isn’t all about opening your          that’s 3.5 points higher than the national             Errant businesses could pay as
wallet. If tough economic times make           average will dampen spending.                    much as $1,000 per day in fines under                  ZOO hAS BIg PLANS FOR
financial contributions difficult, donating            “Certain areas are growing, but it’s     a rule that Clark County commissioners                 WAl-MART eMPlOyees’
your time and volunteering still can           not growing that supersedes last year,”          approved with no discussion.                                  $10,000 gIFT
involve you.                                   says Lau. She explains that most growth                The set of fines would range from               The Las Vegas Zoo usually draws a
       get employees involved:                 is online and at discount venues. But            $250 to $1,000 a day, depending on              younger crowd than the group of adults
A common theme heard among                     discount stores, like Wal-Mart, are double       the number of code violations and the           gathered there one December morning.
companies is to never underestimate            discounting, so while more sales may be          severity. Unlike Las Vegas, the county          With a family of wallabies looking on
how giving employees can be. Many              generated, overall dollar figures will be        was not allowed to impose fines before.         curiously, two dozen employees and
companies even have separate                   less.                                            State lawmakers had denied requests             managers from local Wal-Mart stores
charitable programs run completely by                 With spending down and new                in past years to grant the county such          assembled to present a check for
employees who want to get involved in          business taxes implemented this year,            authority.                                      $10,000 to zoo director Pat Dingle.
their communities.                             many retailers have cut jobs, and if they              But serious health code violations              Wal-Mart market manager Sean
       Scolari’s, Smith’s and Wal-Mart         are doing any seasonal hiring, it’s for          at local endoscopy clinics became a             Evans read a recent column on plans to
are three corporations known for their         fewer people.                                    catalyst for legislators to enable the          improve the zoo and decided to help.
charitable contributions.                              “Another thing that’s happening          county to levy fines.                           In tandem with fellow market manager
                                         RGJ   for the holidays is that retailers, especially         The fines will give the county            Catherine Siefert, Evans collected
                                               small ones, can’t afford the inventory           another option besides yanking a                $10,000 on behalf of the employees at
  NO APPeALS OF gARDNeRvILLe                   they once did,” adds Lau. “Lenders have          business or liquor license.                     the 10 Wal-Marts they manage.
         WAl-MART deCIsIOn                     had financial difficulties, so small retailers                                          LVRJ           Evans said it had been several years
      The 10-day period to appeal              are using their personal credit cards                                                            since he had visited the zoo with his
Douglas County’s conditional approval          to buy inventory. So say a consumer is                   dATA hInT CRysTAls Is                   children, but he appreciates its place in
of a Wal-Mart Supercenter in south             looking for a new toy, and they wait to                 enTeRInG TOuGh MARkeT                    the local community. Siefert praised the
Gardnerville passed with no one                see if it goes on sale. Well, they risk not             The 500,000-square-foot Crystals         zoo’s educational component.
challenging the county’s design review         having it available.”                            opened Dec. 3 with nearly 40 percent                  Dingle, who operates on a
to a higher board.                                    The new consumer mindset is               occupancy. To fully comprehend all the          shoestring budget without government
      Wal-Mart has two years to build its      realism, Lau says. “Before they might            challenges facing CityCenter’s Crystals         funding, said the money would come in
new facility.                                  have bought the most expensive name              luxury center, you probably don’t have          handy as the zoo embarks on expansion
      Conceptual designs for The               brands, but now they’re shopping sales           to look any further than at what has            plans. The gift represents thousands of
Marketplace at Virginia Ranch show             and discount stores.”                            happened to one of the retail and               Wal-Mart associates and what they do in
11 commercial buildings clustered                     Gift cards are also changing              entertainment center’s anchor tenants.          the community he added.
around the front and west sides of the         shopping dynamics. While they used                      A jewelry retailer, which opened                                               LVRJ
152,495-square-foot superstore, acting         to be the go-to gift for the person who          its flagship store at Crystals on Dec. 3,
as a buffer between the store and              had everything, now they’re intended             recently reported store traffic at its U.S.
Highway 395.                                   for recipients to shop after-Christmas           stores was down and retail sales fell nine
      Ranging in size from 6,500 square        sales. So retailers have more difficulty         percent in the third quarter.
feet to 16,600 square feet, the buildings,     predicting what people will buy.                        And this is the market environment
along with Wal-Mart, put the total                    While RAN is hopeful of modest            that Crystals, a high-end mixture of
commercial square footage of the               improvement in 2010, upheaval in                 luxury retail stores, is entering.
project around 267,216 square feet.            Washington, such as the furor over                      Even though many of Crystals’
                             Record-Courier    health care and fear over impending              stores boast prices that will make some
                                               new taxes, will keep consumers in                consumers blink twice to make sure they
                                               cautious mode, hesitant to spend.                are reading the price tag correctly, MGM
6   ◆
                                              • Retail Association of Nevada

                                                     National Notes
      u.S. ReTAIL hOLIDAy SALeS                        Employee fraud involving gift            on employers to offer health coverage to        months of 2009 compared with last year,
              uP 3.6 PeRCeNT                    cards appears to be growing sharply             employees.                                      according to a recent report from TNS
       U.S. retailers posted a better           as retailers struggle to contain overall                The support of business leaders         Media Intelligence.
performance during the 2009 holiday             theft, now estimated at $36 billion a           isn’t critical for passage, but it could help          Although much of the decrease
shopping season, with sales as                  year in the industry, or 1.51 percent           Democrats blunt Republican criticism            is attributable to economic weakness,
tracked by MasterCard Advisors unit             of retail sales, according to a leading         that their bill is bad for the economy.         some retailers are using social media to
SpendingPulse up 3.6 percent.                   national study. Even as total sales                     Many of the country’s biggest           supplement their traditional advertising
       SpendingPulse figures exclude            have been falling, employee theft and           employers have raised alarms over a             at minimal additional costs, said Mike
gasoline and automobile sales. They             shoplifting have been rising across the         provision in the Senate bill that would         Gatti, executive director of the Retail
reflect activity that SpendingPulse tracks      United States, industry experts say, with       tax a government subsidy on retiree             Advertising and Marketing Association, a
in the MasterCard payments networks             occasional arrests making headlines.            drug benefits. The move could force             division of the National Retail Federation.
as well as estimates for other payment                 Many of the gift card crimes are         an accounting step that would require           Best Buy’s “Twelpforce” — a Twitter-
forms such as cash and checks.                  straightforward. Among the variations           hundreds of companies to sharply lower          connected set of customer-service
       The increase was fueled by a 15.5        of such crimes, cashiers often do fake          their earnings next year.                       workers — has been one of the highest-
percent surge in online purchases as            refunds of merchandise and then, with                   Big businesses also worry that new      profile social media outreach campaigns.
well as a modest recovery in areas such         the amount refunded, use their registers        taxes and fees proposed in both versions                                        Denver Post
as luxury spending and women’s apparel          to electronically fill gift cards, which they   of the health legislation could come
as tracked by SpendingPulse. In 2008,           take. Or sometimes when shoppers buy            years before measures meant to contain
retailers posted a drop in sales, their         gift cards, cashiers give them blank cards      wasteful spending in the delivery of
worst holiday performance in decades,
after a global financial markets crisis.
                                                and then divert the shoppers’ money
                                                onto cards for themselves.
                                                                                                health care by doctors and hospitals
                                                                                                take effect.
       The spike in online spending                    A national study, based on                       Groups representing smaller                       eVenTs
stems from greater consumer comfort             information obtained from 106                   and medium-sized firms have largely
with e-commerce, as well as from                retail chains that responded to a               denounced the overall effort, saying it               The Retail Innovation &
snowstorms that hit the East Coast and          questionnaire, said employees were              would drive up their costs. The Senate                marketing Conference
the Midwest in the final week before            responsible for 43 percent of the stores’       bill “implements crippling new taxes,
                                                                                                                                                          March 2-4, 2010
Christmas, stranding many shoppers              unexplained losses, versus 36 percent           and hurts our ability to create jobs at the
at home. Online retail sales account for        for shoplifting. The 2008 National              worst possible time for the economy,”                    Westin St. Francis
about 5 percent of overall sales.               Retail Security Survey showed that              said U.S. Chamber of Commerce                            San Francisco, CA
       Holiday sales can account for            employee theft rose slightly that year          Executive Vice President Bruce Josten.
between 25 percent and 40 percent               to $15.5 billion. A global study of retail              Democrats argue that the final                   Food marketing
of annual sales for many retailers. The         theft found that larcenous employees            result will drive down health-care
National Retail Federation has forecast a       averaged $1,890 in theft, compared with         costs for the self-insured and for small                  Institute (FmI)
1 percent decline in holiday sales              $438 for shoplifters.                           businesses. They say the new taxes                      2010 washington
this year.                                             In some cases, employee theft            in the Senate bill would target drug                Public Policy Conference
       Luxury sales, which include sales at     is part of a bigger problem: organized          companies, health insurers and others                  March 17 & 18, 2010
high-end department stores recovered            crime                                           in the health-care system, and that a
                                                                                                                                                   Hyatt Regency on Capitol Hill
after a bloodbath in 2008, edging up                   Many retailers have embraced             proposed tax on high-value or “Cadillac”
0.8 percent.                                    technology to fight employee theft.             health plans could reduce costs by                   400 New Jersey Ave. NW
       Jewelry sales shot up 5.6 percent        Data mining programs can now detect             discouraging overly generous insurance                   Washington, DC
and gathered steam in the final days            whether a particular cashier is refunding       plans.
before Christmas, aided in part by Wall         far more items than other cashiers, a                   The Senate bill doesn’t contain a            National Assn. of Chain
Street bonuses this year and the stock          strategy often used to fill fraudulent gift     government-run health-insurance plan,
market’s rally in 2009.                         cards. When such trends are detected,           or public option, which is part of the                Drug Stores (NACDS)
       Sales at specialty electronics chains    store officials often review video, taken       House bill.                                             Annual meeting
such as Best Buy Co Inc (BBY.N) rose            by overhead cameras, to see whether a                                                     WSJ            Apr. 24–27, 2010
5.9 percent, in part because of pent up         cashier repeatedly did refunds with the                                                            The Breakers, Palm Beach, FL
demand after sales fell sharply in 2008.        same friend or relative.                                SOCIAL meDIA weBSITeS
       Men’s apparel sales rose 3.9                    The rate of theft is greatest among       sTRenGThened hOlIdAy seAsOn
percent, while women’s clothing sales           retailers with high turnover rates and                        FOR ReTAILeRS                                   FmI 2010
edged down 0.3 percent, though sales            many part-time workers, who may be                     Holiday retail sales might have                    Annual meeting
picked up in December.                          less loyal and under more financial             staved off a visit from the Grinch thanks                 May 10–13, 2010
       Sales at specialty apparel retailers     pressure than full-time workers. He also        in part to social media. Nearly half of                     Mandalay Bay
stabilized after 2008’s disastrous holiday      found higher theft among younger                U.S. retailers polled in a pre-holiday
season, when sales fell by one-fifth. This      workers.                                        national survey said they intended to                      Convention Ctr.
year, sales edged down 0.4 percent, but                                                         increase their use of social media sites                    Las Vegas, NV
showed signs of life after Black Friday                BuSINeSSeS TO PuSh FOR                   such as Facebook and Twitter during the
this year, rising 2.3 percent between             mODIFICATIONS TO SeNATe BILL                  Christmas shopping season.                             NACDS marketplace
the last Friday in November and                        Businesses are set to push for                  Although the exact impact of
December 24.                                    modifications to the Senate-approved            social media on holiday retailing hasn’t
                                      Reuters   health bill, while urging lawmakers to          been calculated, online outreach is                       June 5–8, 2010
                                                steer clear of the version passed by the        thought to have been a factor in the                       San Diego CA
         sTudIes sAy keeP An                    House.                                          3.6 percent increase in November and
            eye On WORkeRs                             The Senate bill, which passed 60-        December spending reported Monday                       NRF Loss Prevention
       Gift cards are just so easy — so         39 on Christmas Eve with no Republican          by MasterCard Advisors’ SpendingPulse.
easy for dishonest employees to exploit,        backing, has drawn tentative support                   In addition to boosting sales,                   Conference & eXPO
that is.                                        from some large corporations and                social media has enabled retailers to                    June 14–16, 2010
       At a flagship store in Manhattan,        industry groups, despite containing             reduce or divert spending on traditional                   Georgia World
a 23-year-old sales clerk was caught            a range of provisions that they hope            advertising in print and broadcast                        Congress Center
recently ringing up $130,000 in false           to change. By contrast, businesses of           media.
                                                                                                                                                            Atlanta, GA
merchandise returns and siphoning the           all sizes oppose the House bill, which                 Total ad spending in the U.S. was
money onto a gift card.                         contains more-stringent requirements            down 14.7 percent in the first nine
                  Retail Association of Nevada •

                                                         On running for (Part 3)
                               Movin’Assemblymen up...the State Senate
                               A series of stories about
RuBeN J. KIhueN (D-AD 11)                         “We need to ensure that             running for her Assembly seat again,              Sheila Leslie’s work on behalf of
matrix Score 68.75%                         consumers are protected,” Kihuen          Sheila Leslie had not planned on           families, children and those in need
Running for Senate District 10 —            said, “we had to cut consumer             running for the Senate.                    is well known. She is also concerned
Clark County                                protections in the last legislative             “I thought Barbara Buckley was       with small businesses and their
      When the Senate District 10           session, but I’m going to work this       going to run for Governor and I was        struggles in the present economy.
seat opened up, Ruben Kihuen                session to bring them back.”              prepared to devote myself to her                  “I know that businesses can’t
didn’t have to think long before                  Education is a primary concern      campaign,” Leslie explained. “When         handle tax hikes in this economy,”
deciding to leave his Assembly seat         of Ruben’s, but right now jobs are an     Barbara decided, for good reasons,         she mused, “we need to diversify
and run for the Senate.                     equal concern.                            not to run, I took some time out           the economy, create more jobs and
      “About 70% of the Senate               “We have to find a way to pay for        and pondered what I wanted to do.          then look for a stable source of rev-
District is my Assembly seat. This          what we need, but taxing business-        There are still issues I want to work      enue. But no tax hikes for now.”
district is composed of the people          es right now would be a disaster. I       on and with Bernice (Mathews)                     She’s concerned about the
I want to help, the people I identify       know of too many small businesses         leaving the Senate, it made sense          possible cuts in the state budget,
with and work with,” Ruben ex-              that could go under if we raise their     for me to run for her seat.”               but has some ideas.
plained. “I’ve been able to address         taxes. We need to lure more busi-               Sheila Leslie is familiar with              “It doesn’t get much publicity,”
the issues which affect my district         nesses to Nevada. We’re the third         the senate district. Her masters in        Leslie said, “but I also chair the
––higher standards for the schools,         most business-friendly state in the       Spanish will come in handy with            Audit sub-committee. The purpose
low-interest loans for small busi-          nation and we need to keep that.          18% or more having a Hispanic              is to look at state agencies to see
nesses when they want to expand             We need to diversify the economy,         background. “I feel I can reach out        if they’re wasting tax dollars or
their workforce and higher penalties        be a leader in renewable energy           to all the constituents in this district   not being as efficient as the law
for domestic violence.”                     and build a tax structure that meets      and reassure them that they have a         intended, or, in some cases, not
      Ruben Kihuen doesn’t just “talk       our needs,” Kihuen said.                  voice in Carson City,” she said.           following the law. This committee
the talk”, he literally “walks the walk”.   He considers himself a fiscal moder-            First starting years ago, with       gives me a blueprint for where cuts
Born in Mexico, he grew up in this          ate and is disturbed that foreclo-        the Children’s Cabinet, Sheila Leslie      might be appropriate.”
district of Las Vegas. He won awards        sures and unemployment have               has proved successful at bringing                 Senator Bernice Mathews,
on the high school soccer fields,           caused so many to be reliant on           the needs of many constituencies           who’s also term-limited and leaving
graduated from UNLV with a degree           government assistance.                    to the attention of the media and          the Senate seat has promised to
in Education and in-between work-                 “I walk my district all the time    the public. When she first ran for         support Sheila Leslie in her run.
ing as a community liaison for the          and listen to the people, their ideas,    office in 1998 she didn’t really                  “That means so much to me,”
College of Southern Nevada and              their concerns, their needs. If I’m not   expect to win.                             she said. “I look forward to meet-
representing his district, he’s com-        listening, then I don’t deserve to be           “I was really quite surprised,       ing and talking to the many small
pleting his Masters Degree in Public        elected,” he said.                        but more than that, I was honored.         businesspeople in the this district. I
Administration.                                                                       And I still feel that esteem today.        want them to know that my door is
      He knows the people in his            SheILA LeSLIe (D-AD 27)                   To be chosen by the voters to rep-         open to them and hear their ideas,”
district. He’s concerned about scam         matrix Score: 66.25%                      resent them is such an honor that I        she concluded. n
artists and others who may take ad-         Running for Senate District 1 –           just want to do the best I can for all
vantage of those who do not speak           washoe County                             my constituents; I want to give back
perfect English.                                Although term-limited from            to the community,” she emphasized.

     Get Ready for the Next Big Shopping Rush
                                              By Barbara Wold, Global Retail & Consumer Expert

                 HETHER IT’S A                   l Establish dress codes for          touch and provides the caller with a             l Stock and clean during
                 HOlIDAy SAlE OR            employees and enforce them.               person to identify with on the other       hours when the store is not open.
                 jUST A BIg SAlE            Employees are the representatives         end of the line.                           Doing these chores when the store
                 EvENT, HERE ARE            of the business and should project              l Clean up the cash-wrap area        is open is inconsiderate to shoppers
a few must-do last minute tips —            the image the business wants to           as-you-go and put everything in            and doesn’t convey a professional
     l Have all salespeople                 convey.                                   its place. Customers are concerned         image.
read company ads, catalogs                       l Greet everyone who walks           about transaction accuracy and                   l Get everyone on board.
and distributed literature before           through the door. Coming up               your services, i.e., shipping, if this     Ensuring that everyone in the
customers come in with questions            with five different greetings — so        area is a mess.                            organization understands what the
and inquiries. Also check out the           customers don’t hear the same                   l Listen, really listen to           winning advantage is and what’s
ads of the competition. If your             greeting over and over when               customers. If you don’t really listen      their role in supporting it.
competition has a Facebook page             shopping in the store.                    and show customers the wrong                     l Stay in contact with
– become a fan so you know what                  l Have employees identify            merchandise – they will assume you         your customer base — contact
information they are passing on to          themselves when answering the             don’t have what they are looking for       customers who shop in your store
customers.                                  phone. This adds a professional           and leave.                                                  Continued on next page
8   ◆
                                           • Retail Association of Nevada

  Valentine’s Day 2010: February 14

              PINIONS ABOUND                   These establishments employed                     in sales.
              AS TO WHO WAS                    18,733 people.                                     Source: USDA National Agricultural
                                                                                                                   Statistics Service
              THE ORIgINAl
              vAlENTINE, with the              $13.9 billion — Total value
                                                                                                 20,227 — The number
most popular theory that he was                of shipments in 2006 for firms
                                                                                                 of florists nationwide in
a clergyman who was executed                   producing chocolate and
                                                                                                 2006. These businesses
for secretly marrying couples in               cocoa products. Nonchocolate
                                                                                                 employed 98,373 people.
ancient Rome in spite of Emperor               confectionery product                                Source: County Business Patterns
Claudius II, who felt that marriage            manufacturing, meanwhile, was a
weakened his soldiers. In any event,           $7.2 billion industry.                            JeweLRy
in A.D. 496, Pope Gelasius I declared                 Source: Annual Survey of Manufacturers
                                                                                                 28,300 — Number of
Feb. 14 as Valentine Day. Through                                                                jewelry stores in the United
the centuries, the Christian holiday           3,563 — Number of confectionery
                                                                                                 States in 2006. Jewelry
became a time to exchange love                 and nut stores in the United States
                                                                                                 stores offer engagement,
messages, and St. Valentine became             in 2006.                                                                                               ranked fifth nationally in marriages,
                                                            Source: County Business Patterns     wedding and other rings
the patron saint of lovers. Esther                                                               to lovers of all ages. In February                   even though its total population
Howland, a native of Massachusetts,                                                              2008, these stores sold $2.6 billion in              that year among states was 35th.
                                               24.5 pounds — Per capita                                                                               (California ranked first in marriages.)
is given credit for selling the first                                                            merchandise.
                                               consumption of candy by                                                                                      Source: National Center for Health Statistics
mass-produced valentine cards                                                                                    Source: County Business Patterns
                                               Americans in 2007.
in the 1840s. The spirit of love                            Source: Current Industrial Reports        The merchandise at these
continues today as valentines are                                                                locations could well have been                       57% and 60% — The percentages
                                                                                                                                                      of American women and men,
sent with sentimental verses, from             FLOweRS                                           produced at one of the nation’s
                                                                                                                                                      respectively, who are 18 or older
and to young and old romantics.                $416 million — The combined                       1,777 jewelry manufacturing
                                                                                                 establishments.                                      and married (includes those who
                                               wholesale value of domestically                                                                        are separated).
CAndy Is dAndy                                 produced cut flowers in 2007 for all
                                                                                                                 Source: County Business Patterns
                                                                                                                                                       Source: Families and Living Arrangements: 2007
1,170 — Number of locations                    flower-producing operations with
producing chocolate and                        $100,000 or more in sales. Among
                                                                                                 Be mINe
                                                                                                 2.2 million — The number of                          72% — Percentage of people 30 to
cocoa products in 2006. These                  states, California was the leading                                                                     34 in 2007 who had been married
establishments employed 39,457                                                                   marriages that took place in the
                                               producer, alone accounting for                                                                         at some point in their lives — either
people. California led the nation in                                                             United States in 2007. That breaks
                                               about three-quarters of this amount                                                                    currently or formerly.
the number of such establishments                                                                down to a little more than 6,000 a                    Source: Families and Living Arrangements: 2007
                                               ($320 million).
with 128, followed by Pennsylvania                        Source: USDA National Agricultural     day.
                                                                                                      Source: National Center for Health Statistics   *The Census Bureau data in this section do
with 116.                                                                  Statistics Service
                                                                                                                                                      not include same-sex marriages; the National
            Source: County Business Patterns                                                                                                          Center for Health Statistics data do.
                                               $29 million — The combined                        126,354 — The number of                              Editor’s note: The preceding data were
                                                                                                 marriages performed in Nevada                        collected from a variety of sources and may
473 — Number of locations                      wholesale value of domestically                                                                        be subject to sampling variability and other
that produced nonchocolate                     produced cut roses in 2007 for all                during 2007. So many couples tie                     sources of error.
confectionary products in 2006.                operations with $100,000 or more                  the knot in the Silver State that it                          Census Bureau’s Public Information Office

    “I don’t understand why Cupid was chosen to represent Valentine’s Day. When I think about
    romance, the last thing on my mind is a short, chubby toddler coming at me with a weapon.”
                                                                                   AUTHOR UNkNOWN

Next Big Shopping Rush Continued
regularly. You can use email or                      l Store and window display                  can be many things. I like to see                    shopping experience will keep
regular mail. I recommend you call             lighting. Add at least 30% more                   enthusiastic, happy staff all pulling                customers in your store longer and
your very best customers yourself.             light in your store; it will affect the           together to achieve the store’s                      will increase sales.
Tell them what’s going on and why              way your store looks and help sell                goals with a focus on exceptional                          Daily sales targets — should be
they need to drop into your store. If          more products. It can be as easy                  customer service.                                    shared with your staff. They should
they need a little more persuasion             as replacing light bulbs that have                      l Hands free shopping —                        know what is expected of them
— let them know that a gift                    burnt out.                                        offer customers a basket, a bag or                   and what the goals of the store are.
certificate for $5 is waiting for them.              l Focus on selling. Teach your              cart. Take your customer’s coats and                 Create a sales culture in your store.
      l Build your database. It’s a            staff to show just one more item to               other bags, and offer to look after                  You alone are the driving force in
very busy time of year but don’t               every customer that they talk too.                them.                                                your business. Get out on the sales
forget to capture customers contact            Don’t forget add on sales at the cash                   Do what ever it takes to make                  floor more often — then watch
info to grow your database — it’s              register.                                         your customers feel wanted and                       your sales increase. They always do
“gold” to you.                                       l Tone in the store — this                  cared for. Creating this type of                     when the boss shows up! n
                Retail Association of Nevada •

                                                                                Important Information for
                                                                                     SIg members
                                                                                   The NRS governing self insured groups requires notifying members of

                                                                             all new members to the Nevada Retail Network Self Insured Group. New members

                                                                                   for NRNSIG from January 1, 2010 to January 31, 2010 are listed below.

                                                                                                            Probe Systems

                                                                                                        Skye Communications

                                                                                    nRnsIG members who wish to register a negative vote
                                                                                        on a new group member, please write NRNSIG at
                                                                                          575 S. Saliman Road, Carson City, NV 89701,
                                                                               indicating which member and the reason(s) for the negative vote.

                       TAKE cONTROl OF yOUR WORKERS’ cOMP cOST
                Be Part of…                         l Greater management control that cuts overhead costs
                                                    l Pre-employment screening at a small co-pay for NRN members only
     The Nevada Retail Network
                Certificate #5004                   l Team Safety/Loss Control Program for all members
                                                    l Investigation and defense of claims
                                                    l Direct savings that give members greater incentive to control losses

                                                    Take Control Today…
                                                    Call mike Olson

         • Self Insured Group •                                       Sponsored by:
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                                • Retail Association of Nevada

              Security Tips for Retailers
               IgH NUMBERS OF        about as you stock your shelves     will expose them to credit card your products are not leaving
               TRANSAcTIONS,         and train your employees.                                           the store faster than your
                                                                         fraud, identity theft, and privacy
               lARgE vOlUMES                                                                             employees are selling them.
                                                                         violations, they will spend their
               OF MONEy              1. PROTeCT yOuR CReDIT              money elsewhere.                      If RFID (radio frequency
and merchandise changing              CARd dATA                               As your online presence    identification) technology helps
hands regularly, and frequent             Consumers are more             grows, choose a Web host with a you track when stock is running
employee turnover make               concerned than ever about                                           low or items are misplaced, use
                                                                         spotless reputation for security,
retailers a prime target for theft   identity theft and credit card      and developers who will ensure  it as a security tool as well. Install
and fraud. The more employees,       fraud, and rightly so: Federal                                      a tag reader at your door to
                                                                         every new feature on your site is
suppliers, and customers you         Trade Commission officials                                          trigger an alarm if an item leaves
                                                                         secure as well as functional. This
interact with each day, the          estimate there were 10 million      may require additional training the store before an employee
greater the odds that one of         U.S. victims of identity theft      for developers, and/or an audit removes or disables its RFID tag
them will be tempted. Here           between early 2002 and              by a security consultant to     at the point of sale. Obtaining
are some security tips so that       early 2003. This resulted in        ensure you have the proper data RFID expertise is available
retailers can avoid spending all     a total estimated cost of US        and application protections in  through large multinational
their time worrying about their      $53 billion to U.S. businesses      place. Your e-commerce hosting  IT consulting firms, as well as
vulnerabilities.                     and individuals, according          company should be able to       smaller, regional consultants
                                     to the Cutter Consortium, an        provide training and expertise  and RFID technology vendors.
IN SummARy:                          international IT research and       on this topic — and contractual Given the fact that RFID is still
      l Securing customers’          advisory firm based outside                                         in early stages of adoption,
                                                                         assurances for security. Consider
financial and personal data                                                                                     evaluate outsourcers
is every bit as important to “The more employees, suppliers, and customers you interact with carefully and hire an expert
your business as providing       each day, the greater the odds that one of them will be tempted.” with real-world experience
quality products.                                                                                               implementing and
      l Security technology          of Boston. In June 2005, the       instituting secure application   troubleshooting RFID projects.
protects your storefront and         major credit card companies        development procedures in
stock as well as your databases.     addressed this issue by            your organization.               nexT sTePs
The retail industry indeed faces     establishing a global technical                                           Working with either your
unique security challenges,          data security standard, known as   3. KeeP yOuR mARKeTINg           IT staff or a security consultant,
ranging from protecting              the Payment Card Industry (PCI)    dATA seCuRe                      pinpoint your most urgent
credit card data from hackers        standard.                                To access your customer    needs and develop a plan to
to protecting inventory from              A merchant that               relationship management (CRM)    address them. Improved security
shoplifters.                         compromises customer               system, require that employees   bolsters customer confidence
      For example, wireless          information by failing to comply   enter two passwords: the first   and avoids costly problems such
networking, point-of-sale            faces hefty fines and may even     for your corporate network,      as: lost revenues from theft;
(POS) devices, and other digital     lose the right to take credit      and the second to access the     lost or compromised data;
technologies can make your           cards entirely. Currently, only    application. This process will   business interruptions caused
company more productive              businesses handling more           protect the application itself   by network downtime, and
and profitable, but they also        than 6 million credit card         and the data within it. (The     the potential legal
provide new opportunities for        transactions a year must meet      same process should, of course,  consequences of a security
thieves to break into a real or      the PCI standard’s requirements    apply to all of your business    breach.
virtual storefront. A hacker who     for regular security audits.       applications housing sensitive         Although you may not
accesses your credit card server     Although most midsize retailers    data)                            have the budget to truly
or shuts down your Web site,         do not reach this threshold,                                        safeguard your entire business,
even briefly, can destroy both       you still need to keep credit      4. PuT CONTROLS ON               even simple steps such as
your profit margins and your         card numbers out of the wrong      yOuR InVenTORy                   requiring employees to change
reputation.                          hands.                                   Knowing what you have in   their passwords regularly and
      Fortunately, safeguarding                                         stock boosts your profit margin, encrypting critical databases
your data doesn’t require the        2. SAFeguARD                       both by enhancing customer       can make a huge difference to
resources of a Marks & Spencer        yOuR e-COMMeRCe                   service and by minimizing        customer confidence — and to
department store chain or an          TRAnsACTIOns                      losses. Integrate financial and  your profitability. Plenty of security            An online sales channel is    supply chain solutions to                         CA Business Journal
initiatives fit neatly into a        only as effective as it is secure. capture individual transactions,
midsize retailer’s budget. Here’s    If customers worry that doing      compare them to expected
what you should be thinking          business with you electronically   inventory levels, and make sure
                                                                                                                                         ◆ 11
                                                             Retail Association of Nevada                                                              PRESORTED
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                                                                                                                                                     PERMIT NO. 98

   Nevada News is published by the Retail Association of
       Nevada, a nonpartisan, nonprofit corporation
   founded in 1969 representing the Retail Community,
 the Chain Drug Council and the Grocery Industry Council.

                    Mary F. Lau
           Elizabeth MacMenamin
     Vice President of Government Affairs
                Lea Tauchen
    Senior Director of Government Affairs
                Bryan Wachter
         Director of Government Affairs
                 Danielle Cherry
               Office Administrator
                 Mike Olson
      Account Executive / Workers’ Comp
                 Ande Engleman
                 Newsletter Editor
        Sue Arzillo, Alphabet Soup Inc.
          Newsletter Design & Layout

                 NRF Calls Senate Health Care Bill
                   Unwanted Gift, Says Passage
                  Could Force Retail Job Losses

                    ASHINgTON —                     that would bring costs under         economy and razor-thin profit        senators to reject the Reid bill,
                    THE NATIONAl                    control and make health care         margins give us the least ability    saying its conditional employer
                    RETAIl                          more accessible by making            to absorb the added expense,”        mandate and other provisions
                    FEDERATION                      it more affordable. What we          Trautwein said. “If labor costs      make it “the biggest anti-
expressed disappointment at                         received are employer mandates       increase, many retailers will have   stimulus legislation imaginable”
the Senate passage of health                        and other provisions that            no choice but to reduce the          and that it would lead to further
care reform legislation, saying                     will drive up costs that are         size of their workforces. The net    job losses in the retail industry
the measure does little to                          already far too high and that        result of this legislation is that   and other segments of the
reduce costs for businesses and                     will endanger the employer-          some workers who currently           economy. n
is likely to result in further retail               provided health insurance            have both a job and health
job losses. NRF said the vote                       system that millions of American     insurance might find themselves      The National Retail Federation is the
                                                                                                                              world’s largest retail trade association,
would be included in its annual                     families depend on. It’s time        with neither.”                       with membership that comprises all retail
ranking of key issues important                     for Congress to go back to the             The Senate voted to pass       formats and channels of distribution
to the retail industry.                             drawing board and come up            the Patient Protection and           including department, specialty, discount,
                                                                                                                              catalog, Internet, independent stores,
      “The Senate thinks it has                     with a health care plan that         Affordable Care Act, sponsored       chain restaurants, drug stores and grocery
given American businesses and                       would actually make solid            by Majority Leader Harry Reid,       stores as well as the industry’s key trading
the public an early Christmas                       progress in reducing costs.          D-Nev. Lawmakers must resolve        partners of retail goods and services. NRF
                                                                                                                              represents an industry with more than 1.6
present, but this isn’t what we                     That would be a gift worth           differences between the Senate       million U.S. retail establishments, more
asked for and it needs to be                        celebrating.”                        bill and a conflicting health        than 24 million employees — about one
returned,” NRF Vice President                            “The employer mandates in       care reform bill passed by the       in five American workers — and 2008 sales
                                                                                                                              of $4.6 trillion. As the industry umbrella
and Employee Benefits Policy                        both the House and Senate bills      House in November before the         group, NRF also represents more than 100
Counsel Neil Trautwein said.                        amount to a tax on jobs that will    legislation can go to President      state, national and international retail
“What we asked for and what                         drive up labor costs for retailers   Obama for his signature.             associations.
Congress promised was a plan                        at a time when the struggling              NRF previously urged

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